BULLIONS

Bullions counter may move in range as investors will eye the FOMC meeting outcome later today after the U.S. inflation print cemented bets for a pause in interest rate hikes. Gold can move in range of 59000-59800 while silver also can move in range of 72500-73500. U.S. consumer price index rose 4.0% in May, its smallest annual increase in more than two years, but stayed well above the Fed’s 2% target. In the 12 months through May, core CPI climbed 5.3%, showing that underlying price pressures remained strong. Fed officials sat down on Tuesday for their first meeting in 15 months with no pre-determined interest rate hike on the table, in what amounts to the debut gathering of the “will-they-or-won’t-they” era. Expectations the Fed will keep its target rate unchanged in a range of 5% to 5.25% are currently at 95.4%, according to CME’s Fedwatch tool.

BASE METALS

In base metal counter, Copper can trade on mixed path as it can move in range of 725-733. Some imported copper has flowed into the Guangdong market, and the inventory has increased slightly. Copper futures prices rebounded due to greater expectations of the Fed slowing down interest rate hikes. On the macro front, after the release of the US CPI data in May, the US dollar index fell back in the short term, and LME non-ferrous metals hiked. Zinc may remain on subdued path as it can move in range of 215-218. Aluminum can trade sideways in range of 202-206.

ENERGY: Crude oil may witness short covering as it can move in range of 5600-5800. U.S. crude oil stocks rose by about 1 million barrels in the week ended June 9, according to market sources citing American Petroleum Institute figures on Tuesday, contrary to the average estimate for a 510,000 million barrel decline. Market participants were also closely watching a Federal Reserve meeting, which has no pre-determined interest rate hike on the table. Rate hikes strengthen the dollar, making commodities denominated in the U.S. currency more expensive for holders of other currencies and weighing on prices. Meanwhile, OPEC+ has granted Russia a slightly higher oil production baseline, meaning Russia can produce more under the latest quotas than previously agreed. Natural gas prices may trade with upside bias as it can move in range of 186-198.

Disclosure

Globe Capital Market Limited (“GCML”) is a Stock Broker registered with BSE, NSE, USE and MSEI in all the major segments viz. Capital, F & O and CDS segments. GCML is also a Depository Participant and registered with both the Depositories viz. CDSL and NSDL. Further, GCML is a SEBI registered Portfolio Manager. GCML includes subsidiaries, group and associate companies, promoters, directors, employees and affiliates.

Globe Commodities Limited, Globe Derivatives and Securities Limited & Globe Fincap Limited are subsidiaries of GCML. Rolex Finvest Private Limited, A to Z Consultants Private Limited, A to Z Venture Capital Limited, M. Agarwal Stock Brokers Private Limited, A M Share Brokers Private Limited, Shri Adinath Advertising Company Pvt. Ltd., Orient Landbase Private Limited, Bolt Synthetic Private Limited, Price ponder Private Limited and Lakshya Impex Private Limited are associates of GCML. Globe Comex International DMCC is step down subsidiary of GCML.

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